For more information: 
Rick Uhlmann 608/231-8940 rick.uhlmann@cunamutual.com
Phil Tschudy 608/231-7188 philip.tschudy@cunamutual.com

June 19, 2008
 
Baby Boomers’ Retirement Requires Credit Union Strategy
Ignore Their Needs and Your Relevance Will Erode, Discovery Attendees Told
 
HOLLYWOOD, Fla. --  Credit unions should care about and prepare for the surge of Baby Boomers converging on their retirement years, attendees of CUNA Mutual Group’s Discovery Conference were told Thursday.
 
“To not have a strategy for the largest generation in U.S. history will lead to erosion of a credit union’s relevance and economic viability,” said Scott Knapp, vice president, Retirement Services and Strategy, CUNA Mutual. “This is a matter of importance that should be addressed at the highest level of the credit union.”
 
Knapp told Discovery Conference attendees members nearing retirement are “scared to death” about not having enough money during retirement and that society has “over committed” to Baby Boomer retirement and won’t be able to deliver on many benefits. In a Gallup poll, 63 percent of Baby Boomers said they were concerned about not having enough money for retirement and more than half were worried about being able to pay for medical costs.
 
“Your active members near retirement are very concerned about Social Security and Medicare’s future. If you are going to remain relevant to those members and as a financial institution, you have to address the issue of retirement for them.”
 
Knapp said the majority of people are not saving the right amount for retirement. “That’s the easiest part of preparing for retirement, but few are getting it right. The hardest part is converting that accumulation of assets in order to sustain your retirement years. Building that plan is hard.”
 
Credit unions need to step up and help members against some of the major retirement risks, including how to avoid outliving your money, taking out too much, health care concerns and protecting against inflation, to name a few, Knapp said.
 
“Credit unions of all sizes need to play some role in helping those members through the difficult part. Position your credit union as a retirement resource center, providing investment, insurance and other services that address the retirement risk and management challenges,” Knapp said. “Adopt a comprehensive retirement strategy, communicate it to employees and train them to help members address their retirement needs. Partnering with a vendor to offer a product menu during your members’ pre-retirement years is a good way to address these challenges ahead of time.”
 
Another way to grow membership is to offer retirement planning services to your credit union’s SEG groups before retirement, Knapp said. He also recommended selling 401(k) programs to those employers as a way to establish and long-term, sustainable relationship with an employer and their employees.
 
“A strategy to address your members’ retirement needs is crucial, or at retirement they will walk out of your branches forever,” Knapp said. “This is an issue that affects your capital investment strategy, marketing, distribution and essentially the future of your credit union.”
 
Recognized as a premier hands-on professional development conference for credit union leaders, CUNA Mutual’s Discovery Conference offers more than 55 work sessions that deliver relevant content and actionable takeaways.  Credit union leaders also benefit from the extraordinary networking and hands-on learning opportunities.
 
CUNA Mutual Group is a leading provider of financial services to cooperatives, credit unions, their members and valued customers worldwide. With more than 70 years of market commitment, CUNA Mutual’s vision is unwavering: to be a trusted business partner who delivers service excellence and customer-focused, best-in-class products and market-driven innovation. More information on the company is available on the company’s Web site at www.cunamutual.com.